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Reducing Water Demand through Behavioural Incentivisation

Reducing Water Demand through Behavioural Incentivisation

Challenge: Breakthrough 4: Catalyst
Water cycle: Customers
Funding amount: £1,874,011
Lead water company: Severn Trent Water
Partner water companies: Cambridge Water Hafren Dyfrdwy Cyfyngedig Portsmouth Water South Staffs Water
Delivery stage: In progress
Est. completion date: Apr 2028

Reducing Water Demand through Behavioural Incentivisation

Amount awarded: £1,874,010 

Led by: Severn Trent Water 

Partners: Consumer Council for Water, Hafren Dyfrdwy Cyfyngedig, Nectar 360 Ltd, Portsmouth Water, South Staffs Water and Cambridge Water, Spring Innovation Ltd 

We have partnered with Nectar, the UK’s largest loyalty scheme and customer behaviour experts to develop a utility-sector first: using smart meter gamification to incentivise customers to reduce their consumption by awarding points for water-efficient behaviour. This can also drive lower water and energy bills for customers.  

“This funding enables us to partner with Nectar to trial at scale and pace behavioural incentivisation to drive change in deep-set customer behaviours. This will support sector commitments to reduce water consumption to 110 litres per person per day by 2050, helping to protect the environment and ensure resilient supplies.” – Tanvir Razvi, Business Strategy and Development Manager, Severn Trent Water Ltd

Update from the project (January 2025)

Severn Trent has now launched its new water reduction incentive trial in partnership with Nectar. The trial will encourage customers to reduce their water consumption and will incentivise them for doing so. We’re currently in the initial recruitment phase and the first group of eligible customers have been invited to join the trial. Customers that choose to sign-up and link their Nectar and Severn Trent accounts will receive Nectar points for doing so. We encourage customers to log into their account regularly to see their weekly water reduction target. As we’re trying to firstly drive engagement in water reduction, we also reward customers with Nectar points just for logging in. If customers achieve their target, they’ll be awarded Nectar points. The more consecutive weeks they achieve their target; the more points we’ll award them – this seeks to drive more enduring behavioural change. Customers who are signed up will receive monthly and quarterly communications on points accrued, collecting more points, and plenty of engaging water saving tips. As the trial progresses, we’ll adapt both our target and reward methodology and communications strategy as needed to ensure we’re engaging with customers in the most optimum way and driving water saving benefits.